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What is the private market outcome and the socially desirable outcome?
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What is the expected outcome from investing in the stock market?
The expected outcome is Profit. But, the actual outcome may be different if the stock selected was poor.
Is it possible for perfect competitive market to be inefficient?
It is possible for perfectly competitive markets to be inefficient when externalities are present. Externalities arise when an economic activity has an unintended impact on other economic agents and/or the market. This results in there being a socially optimal level of production that does not coincide with the privately determined equilibirum level of production derived from the supply and demand curves (which, respectively, represent the marginal private costs and marginal private benefits to producers and consumers). With respect to the efficiency of markets, positive externalities result in too little of the good in question being produced. In this case, the market equilibrium is lower than desired (the marginal social benefit curve lies above the marginal private benefit [demand] curve). In this case, the efficient market outcome would occur where the marginal social beneift curve interests the marginal private cost (supply) curve. When negative externalities occur, too much of the good in question is being produced. This results in the supply curve, which represents the marginal private costs of production, lying below the marginal social cost curve because the private cost curve fails to take into account the costs of production incurred by all of society. In this case, the efficient market outcome would occur where the marginal social cost curve coincides with the private marginal benefit (demand) curve.
Why must private ownership of property be guaranteed before a free market economy will work?
Private ownership of property is essential to a free market economy. Without private ownership of property a free market economy cannot exist.
Are private ownership limited government involvement and private investing three characteristics of a planned mercantile free market economic system?
market
In which market structures do firms produce at the socially optimal level?
Perfectly competitive
Where do the conditions of the market make unified control necessary or desirable to the public interest?
In a natural monopoly, the conditions of the market make unified control necessary or desirable to the public interest.
What is prediction market?
prediction market is a market where investors can buy and sell predictions about the outcome of an event.but what are these predictions
What is the expected outcome from investing in the stock market?
The expected outcome is Profit. But, the actual outcome may be different if the stock selected was poor.
Is it possible for perfect competitive market to be inefficient?
It is possible for perfectly competitive markets to be inefficient when externalities are present. Externalities arise when an economic activity has an unintended impact on other economic agents and/or the market. This results in there being a socially optimal level of production that does not coincide with the privately determined equilibirum level of production derived from the supply and demand curves (which, respectively, represent the marginal private costs and marginal private benefits to producers and consumers). With respect to the efficiency of markets, positive externalities result in too little of the good in question being produced. In this case, the market equilibrium is lower than desired (the marginal social benefit curve lies above the marginal private benefit [demand] curve). In this case, the efficient market outcome would occur where the marginal social beneift curve interests the marginal private cost (supply) curve. When negative externalities occur, too much of the good in question is being produced. This results in the supply curve, which represents the marginal private costs of production, lying below the marginal social cost curve because the private cost curve fails to take into account the costs of production incurred by all of society. In this case, the efficient market outcome would occur where the marginal social cost curve coincides with the private marginal benefit (demand) curve.
What describes someones expected outcome from investing the stock market?
Making profit from savings, describes someone's expected outcome from investing in the Stock Market. Making profit from savings
What describes someone's expected outcome from investing in the stock market?
Making profit from savings, describes someone's expected outcome from investing in the stock market. Making profit from savings
What is Private Market?
on the private market transaction are directly bitween two parties and can take any form the parties agree to
Why must private ownership of property be guaranteed before a free market economy will work?
Private ownership of property is essential to a free market economy. Without private ownership of property a free market economy cannot exist.
Are private ownership limited government involvement and private investing three characteristics of a planned mercantile free market economic system?
market
In which market structures do firms produce at the socially optimal level?
Perfectly competitive
Why might a government intervene in the market economy?
Essentially, due to market failure of some type: the market does not efficiently allocate some desirable commodity and the government attempts to correct this misallocation.
For a market to exist you have to have what?
Private Property Rights
